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Company Formation in the Hungary
Hungary is a dynamic hub bridging Central and Eastern Europe, offering a strategic location for international business. The country provides a straightforward and business-friendly environment for company formation, supported by a government that actively encourages entrepreneurship and economic growth.
Expert Company Formation Support
We guide you through setting up your company in Hungary, choosing the right legal structure, preparing all required documents, and ensuring full compliance.
Timeframes
With all documentation in order, registration is typically completed in around 5 to 10 working days.
Ready for Business
From initial consultation through full registration and post-incorporation setup, we handle the key steps so your company is legally established and ready to operate in Hungary.
Quick Incorporation
Our all-inclusive Hungarian company formation package provides you with all you need to incorporate and run a company in Hungary, including a bank account, VAT registration and a registered office for twelve months.
- Extremely favourable corporate taxes
- No withholding tax for dividend payments to non-resident companies
- Low 15% WHT for non-resident individuals
Start a business in Hungary
Hungary offers one of the lowest corporate tax rates in the EU at 9%, making it an especially attractive location for foreign investment. You can establish a limited liability company (Kft.) with a minimum share capital of HUF 3 million (approximately €7,500) and enjoy full foreign ownership along with access to a skilled, affordable labour force. The formation process is straightforward, and non-residents can register a company remotely, gaining entry to the European Single Market and benefiting from Hungary’s strategic Central European position.
Hungarian Incorporation
Ongoing Obligations
Hungarian companies must maintain proper accounting records in accordance with local accounting standards, file annual financial statements by 31 May of the following year, and submit corporate tax returns electronically. VAT returns are generally filed monthly or quarterly. Companies must also keep a beneficial ownership register, and an audit is required if revenue, assets, or employee thresholds are exceeded.
Capital Setup
A Hungarian Kft. requires a minimum share capital of HUF 3,000,000 (approximately €7,700). Contributions can be made in cash or non-cash assets, and at least half of the capital must generally be paid before registration. Shareholders’ liability is limited to their contribution, and the company can increase capital at any time after incorporation.
Business Structure Requirements
The most common legal entity is the Kft. (Korlátolt Felelősségű Társaság / Limited Liability Company). It requires at least one shareholder and one managing director, who can be individuals or corporate entities. There are no restrictions on foreign ownership, and directors do not need to reside in Hungary, though a local registered office is mandatory.
Taxes
Hungary’s corporate income tax rate is 9%, the lowest in the EU. In addition, companies pay a local business tax (LBT) of up to 2%, depending on the municipality. Dividend income is typically exempt under EU directives, and Hungary has over 80 double-tax treaties. There are also R&D tax credits and incentives for investments in priority sectors such as technology, energy, and manufacturing. VAT registration is required once annual turnover exceeds HUF 12 million (around €30,000).
Company Formation in Hungary
We will help you navigate these treacherous legal waters easily so that your trademarks are protected and secure.
£2,400.00
/ Company Formation
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How it works
See our step by step process once you purchase this item.
- 1
- 2
Answer some questions
We will send you some simple questions for you to fill in so that we can properly set up your new company in Hungary.
- 3
Sit back and relax
Let us do the work to set up your Hungarian company. This will include a really quick and easy identity check where you’ll need your ID or passport to hand.
- 4
Reap the benefits!
Once your company has been formed, you can officially start doing business in Hungary!
Questions?
What types of companies can be formed in Hungary?
Hungary has similar company structures to all other European nations. A private company limited by shares is called a ZártkörűenMűködőRészvénytársaság (ZRT) and a limited liability company is called a KorlátoltFelelősségűTársaság (Kft). Hungary also offers public limited companies, general and limited partnerships and branch offices for companies incorporated in a foreign country.The Kft is the most common vehicle available and is the simplest to incorporate. It is also the most common option for foreign individuals wanting to set up a business in Hungary.The ZRT is ideally suited for large enterprises.
How many directors does a Hungarian Limited Company (Kft) require?
Only one director and one shareholder. The director and shareholder need not be a resident or citizen of Hungary.
How much capital is required to start a Hungarian Private Limited company (Kft)?
A Hungarian private limited company (Kft) requires a minimum share capital of HUF 3,000,000 (approximately €8,000). This amount can be contributed in cash, non-cash assets, or a combination of both, and must be fully subscribed before registration. While the entire capital does not always need to be paid in immediately, it must be available to the company once operations begin to ensure compliance with Hungarian company law.
What is the taxation rate for dividends in Hungary?
Dividends paid by Hungarian companies to foreign corporate shareholders are generally exempt from withholding tax (WHT). However, dividends paid to foreign individuals are subject to a 15% withholding tax, which may be reduced or eliminated under an applicable double taxation treaty. Hungary maintains an extensive network of such treaties, ensuring that most investors benefit from preferential rates or complete exemption from dividend withholding tax.
Are corporate shareholders permitted?
Yes.